The Interest Expense in the worksheet's unadjusted trial balance column is $3,000. Interest Expense in the income statement column is $7,000. Which of the following entries would have caused this difference?
A)A $7,000 credit to Interest Expense in the worksheet's adjustments column
B)A $7,000 credit to Interest Payable in the worksheet's adjustments column
C)A $4,000 debit to Interest Expense in the worksheet's adjustments column
D)A $4,000 credit to Interest Expense in the worksheet's adjustments column

Question

Quizplus · Accepted Answer

The difference between the unadjusted trial balance column and the income statement column for Interest Expense is $4,000 ($7,000 - $3,000). This suggests that interest expenses of $4,000 were not recorded in the unadjusted trial balance column. Therefore, a debit of $4,000 to Interest Expense in the worksheet's adjustments column would be required to correct the error. Option A and B do not explain the difference, and option D would make the difference wider. Hence, C is the correct choice.

The Interest Expense in the Worksheet's Unadjusted Trial Balance Column